Behavior Quote by Jeffrey Pfeffer
“Typical pay increases are not enough to motivate employees, but they are enough to irritate them. … Even when companies create seemingly significant pay differentiation between low and high performers, the actual cash increase is insufficient to sustain performance – or it drives the wrong behaviors. … Effective management is a system, not a pay plan. The mistake is that companies try to solve all their problems with pay.”
About This Quote
Source Article: Harvard Business Review, “The Wrong Way to Motivate Employees”, 2016
Pay raises alone rarely boost motivation; they may cause irritation and unintended behaviors if not part of a broader system.
In simple terms: Raises often irritate, not motivate, without systemic support.
Key Takeaway
Focus on holistic management, not just compensation.
Themes
motivation
compensation
management
behavior
Mood
frustrated
reflective
Type
advisory
analytical
When to use this quote
- performance reviews
- salary planning
- employee engagement
- leadership training
Key Concepts
incentive design
organizational psychology
Questions to Reflect On
- How can you align rewards with long‑term goals?
- What non‑monetary incentives could complement pay?
A Different Perspective
Higher pay can create entitlement or short‑term focus, neglecting intrinsic drivers.
